Rupee rises 25ps to 87.84/$

Mumbai: The rupee appreciated 25paise to close at 87.84 against US dollar, tracking a positive trend in domestic equities and supported by optimism over US–India trade negotiations.

Forex traders said the Indian rupee strengthened for the fourth consecutive session on Wednesday and rose to the highest level in two and a half weeks on broad weakness of the American currency amid hopes of a US Fed rate cut.

They said investors are closely following the Federal Reserve’s policy decision as dollar softness globally is triggering rupee’s strength. The market is expecting a 25-bps rate cut, and investors will watch out for the Fed chair’s speech for further guidance.

At the interbank foreign exchange market, the rupee opened at 87.84, then touched an intraday low of 87.71 and a high of 87.86 against the greenback.

The domestic unit closed at 87.84, registering a gain of 25paise over its previous close. On Tuesday, the rupee appreciated 7paise to close at 88.09 against the US dollar.

“We expect the rupee to strengthen further amid sustained weakness in the US dollar ahead of the FOMC meeting decision. Markets expect a 25-bps rate cut,” said Anuj Choudhary, Research Analyst, currency and commodities, Mirae Asset ShareKhan.